Clean energy push: Rio Tinto pilots biofuels with Pongamia seed oil in Australia

The global mining and metal giant Rio Tinto has announced plans to develop Pongamia seed farms in Australia as part of a new biofuels pilot project to produce renewable diesel. The project will explore the potential of Pongamia seed oil as a feedstock for renewable diesel. This promising and innovative approach could position it as a cleaner alternative to conventional fossil fuels. The initiative seeks to assess whether Pongamia seed oil can meet Rio Tinto's future renewable diesel needs while fostering the growth of the biofuel industry in Australia.

The company is in the final stages of acquiring around 3,000 hectares of cleared land near Townsville, Queensland, where it will establish farms to monitor seed growth and measure oil yields under local conditions.

Rio Tinto has partnered with Midway Limited, which will oversee the planting and management of the farms. Midway will collaborate with nurseries, agricultural experts, and research organizations throughout the pilot while focusing on creating opportunities for Traditional Owners and local communities.

This pilot is part of Rio Tinto's broader commitment to achieving net-zero Scope 1 and 2 carbon emissions by 2050. As the company explores sustainable solutions, it views biofuels as an interim measure to reduce dependency on fossil diesel, especially while electrification technologies for heavy industries continue to evolve. Rio Tinto is also considering the potential role of biofuels in operations where electrification faces practical constraints.

This initiative represents Rio Tinto's drive to integrate biofuels into its low-carbon energy strategy. By reducing its environmental footprint and contributing to the development of a new, sustainable biofuel sector in Australia, Rio Tinto is demonstrating its unwavering commitment to sustainability and environmental stewardship.

Rio Tinto Chief Decarbonisation Officer Jonathon McCarthy said, “Diesel accounts for around 10 per cent of our emissions footprint in Australia. While we continue to pursue electrification as the long-term solution for displacing the majority of our diesel use, the Pongamia seed pilot is an important parallel pathway that could reduce our reliance on diesel in the mid-term. It also presents a compelling option for other applications that are challenging to electrify, including blasting and non-haul equipment."

“Australia does not yet have a biofuel feedstock industry sufficient to meet domestic demand. A sustainable biofuel industry here could enhance the region’s fuel security, create local economic opportunities, and contribute to emissions reduction targets. We are excited about the potential of the Pongamia seed pilot and look forward to partnering with Midway Limited and north Queensland communities.”

Midway Limited Managing Director Tony McKenna said, “We are very excited to be partnering with Rio Tinto on this innovative pilot project. We are proud to be playing an important role in helping develop a sustainable domestic biofuel industry."

“The collaboration continues the growth of our position as trusted providers with the capability and experience to deliver a variety of projects for emitters who are committed to seeking alternative solutions to reduce their net emissions.”

This pilot follows a smaller-scale trial at Rio Tinto Gove operations in the Northern Territory, where Pongamia saplings were planted to learn more about their response to low soil quality, heat and other climatic conditions in northern Australia.​